As of August 01, 2026, the average salary for a Tool Design Engineer in the United States is $102,817 per year, which breaks down to an hourly rate of $49.
However, a Tool Design Engineer's salary can vary significantly. Here’s a look at the typical salary range:
Compensation Planning
Develop a Job Description
Pay Equity
2026 Compensation Trend
AI Onboarding
Smart Recruiting
A Tool Design Engineer's salary isn't a fixed number. It's shaped by several important factors. Below, we'll explore how your years of experience, geographic location, education and company size can directly affect your earning potential.
Experience is a primary driver of a Tool Design Engineer's salary. As you build your skills and take on more complex tasks, your compensation generally increases. Here’s how the average salary grows at different career stages:
| Levels | Salary |
|---|---|
| Tool Desi... Level Tool Design Engineer | $76,532 |
| Tool Desi... Level Tool Design Engineer | $89,774 |
| Tool Desi... Level Tool Design Engineer | $102,230 |
| Tool Desi... Level Tool Design Engineer | $123,957 |
| Tool Desi... Level Tool Design Engineer | $146,144 |
What Am I Worth?
Your salary can change significantly depending on where you work. States with a higher cost of living and strong industrial sectors often pay more to attract Tool Design Engineers. For example, consider the average annual salaries in these key locations:
Demanded Skills for the Role:
| Skills | Demand Percentage |
|---|---|
| Analysis | 7.61% |
| Architectural Drawing | 3.09% |
| Work Ethic | 2.06% |
| Skill | Salary | Salary % Increase |
|---|---|---|
|
Customer Communications
|
$111,042 |
8%
|
|
Strategic Planning
|
$111,042 |
8%
|
|
Business Ethics
|
$108,986 |
6%
|
|
Hard Working
|
$106,930 |
4%
|
|
Logistics
|
$105,902 |
3%
|
|
Organizing
|
$105,902 |
3%
|
For Tool Design Engineer roles, the industry you choose can affect earning potential by as much as 75% (the gap between the highest and lowest paying industries). Data shows that the Software & Networking and Financial Services sectors offer the strongest compensation, at 30% above the average. In contrast, Tool Design Engineer positions in Transportation or Telecom typically offer lower base pay, as these industries often view Tool Design Engineer as a support function rather than a direct revenue driver.
| Industry Sector | Average Annual Salary | Average Hourly Rate | Pay vs.Avg |
|---|---|---|---|
| Software & Networking | $133,662 | $64.0 | 30% |
| Financial Services | $128,521 | $62.0 | 25% |
| Biotechnology | $123,380 | $59.0 | 20% |
| Pharmaceuticals | $123,380 | $59.0 | 20% |
| Energy & Utilities | $118,240 | $57.0 | 15% |
Your level of education can impact your salary potential. While many Tool Design Engineers enter the field with a Associate's Degree degree, higher education can lead to more specialized and higher-paying roles.
According to our 100% employer-reported salary data, the median salary for a Tool Design Engineer with a Associate's Degree is between $105,182 and $112,527).
Tool Design Engineer Salaries by Degree Level
| Degree Level | % of user with this level of education |
|---|---|
| No Diploma | 7.7% |
| High School | 23.1% |
| Associates | 30.8% |
| Bachelors | 30.8% |
| Masters | 7.7% |
| Doctorate | 0.0% |
Understanding how a Tool Design Engineer's annual salary breaks down can help with budgeting. Below, you can see the average hourly rate, weekly pay, and monthly pay for this role. Use the buttons to switch between different pay periods.
Last Updated on August 01, 2026Salaries for a Tool Design Engineer can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $104,347 in 2023 to around $99,893 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Tool Design Engineer salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 |
View More
|
| 2023 | $104,347 |
| 2024 | $101,809 |
| 2025 | $99,893 |
| 2026 |
View More
|
| 2027 |
View More
|
If your compensation planning software is too rigid to deploy winning incentive strategies, it’s time to find an adaptable solution.
Compensation PlanningHere are companies hiring for Tool Design Engineer and their salaries, click below for more details.
Ready to take the next step in your career? Browse thousands of current Tool Design Engineer job openings on our job board. Use the search bar below to find your perfect match.
Get a Salary Increase
Analyze the market and your qualifications to negotiate your salary with confidence.
Search Job Openings
Search thousands of open positions to find your next opportunity.
Adjust Employee Salary
Individualize employee pay based on unique job requirements and personal qualifications.
Price My Industry Jobs
Get the latest market price for benchmark jobs and jobs in your industry.
The Software & Networking industry offers the highest average compensation for Tool Design Engineer roles, with salaries approximately 30% above the market median.
Salary.com provides salary estimates, histograms, trends, and comparisons using data from employer job postings and third-party sources.
We offer detailed salary information across multiple percentiles for your reference. (Click here to learn Why the Salary Midpoint Formula Is Crucial for Achieving Pay Equity.)
With the most extensive online, real-time compensation data available, Salary.com helps you pinpoint your exact pay target.
Salary.com's CompAnalyst platform offers:
